For the best exchange rate pound to euro, Best Exchange Rates UK is your best bet!

March 2nd, 2012

Best Exchange Rates UK keep a keen eye on best exchange rate pound to euro. We will explain in laymen’s terms why getting the best exchange rate is so important.

The exchange rate is the price of one currency expressed in terms of another. If you go abroad and the country you are visiting uses a different currency from the pound in the UK, for example, then you will have to buy the currency native to that country. If you travel to Spain, then you will currently need to buy euros to spend at your destination. The best exchange rate pound to euro is the amount of euros you will get in exchange for your pounds. At the time of writing, the exchange rate for a pound to euros was £1 = €1.20. If you went to a bank to change £100 into euro, you would get back €120 back.

Businesses of all shapes and sizes may have to trade with other businesses and consumers from around the world. In doing so, they do one of two things: either they sell goods and services abroad for which they will receive payment (exports), or they buy goods and services from abroad (imports), in which case they will have to make international payments. If a UK business is involved in exporting goods and services abroad, it will want paying in sterling. Foreign buyers will therefore, have to change their currency into sterling to make the payment and they will want the best exchange rate pound to euro they can possibly get. If a UK business is importing goods and services from abroad, the foreign seller will expect to be paid in their native currency. The UK business, therefore, has to change pounds into that currency.

For businesses that trade abroad, they face the problem of changing exchange rates. The demand and supply of currencies on the foreign exchange markets – all the businesses, banks and individuals who are looking to buy and sell different currencies – is constantly changing. As a result, the foreign currency exchange rate changes minute by minute, hour by hour, day by day. For businesses trading abroad, this has a significant effect on them and that’s why it’s so important for UK businesses and consumers to get the best exchange rate pound to euro – Best Exchange Rates UK can make sure you do, so get in touch today.